The GPS dataset — Growth, Profit, Stability, produced by the National Alliance Research Academy — is the operational-variance reference in the agency-benchmark literature. It represents approximately 153 participating agencies and is the dataset an analyst reaches for when diagnosing why a specific agency's operational metrics diverge from peers. This page covers the dataset's structure, its distinctive profit basis, and the variance framework that makes it diagnostic.
Five tiers, two cross-cuts.
GPS's defining structural advantage is its segmentation. The dataset slices the agency universe four ways:
| Dimension | Segments |
|---|---|
| Revenue tier | Under $500K · $500K–$1M · $1M–$2M · $2M–$3M · $3M+ |
| Metro size | Rural/Small Town · Medium City · Big City/Large Metro |
| Business focus | Commercial-Lines-focused · Property & Liability-focused |
| Aggregate | All-agencies combined baseline |
The metro-size and business-focus cross-cuts are unique to GPS — no other benchmark dataset in the Milly-consumed corpus segments this way. The practical value: an analyst diagnosing a rural CL-focused agency's productivity can compare against the precise GPS segment (rural, CL-focused) rather than a blended all-agencies average that mixes urban PL agencies into the comparison. The granular small-tier coverage (Under $500K, $500K–$1M) is the second structural advantage — GPS reaches below the BPS Under-$1.25M floor, making it the only structured operational reference for sub-$1.25M tuck-in targets.
Pre-tax profit, not EBITDA.
The single most important interpretation point: GPS measures pre-tax profit, which includes depreciation and amortization in the expense calculation. This differs fundamentally from BPS, which reports Pro-Forma EBITDA (excluding D&A). The distinction is critical in any M&A context, because the deal will be priced against EBITDA, not pre-tax profit.
A multiple applied to a GPS-derived pre-tax profit number is not a multiple applied to a BPS-derived Pro-Forma EBITDA. The right use of GPS in an M&A workflow is operational diagnosis — not valuation.
The correct workflow: use GPS to diagnose operational variance (why is this agency's expense ratio or revenue-per-person off the segment median?), and use the BPS Pro-Forma EBITDA for the valuation anchor. Conflating the two — applying an EBITDA multiple to a pre-tax-profit number — systematically mis-prices the deal.
V−, OK, V+, and the Spread.
GPS variance analysis classifies agency performance into three bands relative to the segment median:
| Band | Definition | Signal |
|---|---|---|
| V− (significant negative) | 25%+ below median | Potential operational or structural issue |
| OK | Within normal range of median | In line with peer group |
| V+ (significant positive) | 25%+ above median | Operational strength or efficiency advantage |
The variance bands are the diagnostic entry points. A V− on expense ratio flags a cost-discipline problem; a V− on revenue per person flags a productivity problem; a V+ on either flags an operational strength worth understanding and preserving. The bands turn raw benchmark comparison into a structured diagnosis.
The Spread metric is GPS's productivity workhorse: revenue per person minus compensation per person. It represents the revenue available per employee after compensation costs — a direct indicator of operational efficiency. An agency with a high Spread is generating more revenue per dollar of compensation; a low Spread signals either over-compensation or under-productivity. The Spread is the metric a buyer examines first when evaluating whether an agency's people costs are in line, and the metric a seller addresses first when preparing the book for sale.
The diagnostic-first workflow.
GPS is the right starting point for operational-variance analysis and the right complement to BPS for sub-$1.25M targets. The decision checklist:
- Diagnosing operational variance (expense ratios, productivity, balance-sheet ratios) → start with GPS.
- Target below the BPS $1.25M coverage floor → GPS is the only structured operational reference.
- Segment-specific comparison (rural CL-focused, big-city PL-focused) → GPS's metro/focus cross-cuts.
- M&A valuation anchor → use BPS Pro-Forma EBITDA, not GPS pre-tax profit.
- Always cite the GPS vintage and the specific segment in any benchmark claim.
GPS pairs with the BPS dataset (the M&A-valuation standard) and the broader agency benchmarks unified reference Pillar, which catalogs all four datasets and the routing logic for which source answers which question.